Estimating Real Production and Expenditures across Nations : A Proposal for Improving the Penn World Tables
From its inception, the Penn World Tables (PWT), building on the International Comparisons Program (ICP) of the United Nations, has sought to compare the standard of living of individuals in different countries. That is, the term "real GDP per...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2007/03/7451133/estimating-real-production-expenditures-across-nations-proposal-improving-penn-world-tables-estimating-real-production-expenditures-across-nations-proposal-improving-penn-world-tables http://hdl.handle.net/10986/7243 |
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okr-10986-72432021-04-23T14:02:33Z Estimating Real Production and Expenditures across Nations : A Proposal for Improving the Penn World Tables Feenstra, Robert C. Heston, Alan Timmer, Marcel P. Deng, Haiyan BENCHMARK BENCHMARK DATA CONSUMER PRICE CONSUMER PRICE INDEX CONSUMER PRICES CURRENCY DEFLATION DEFLATORS DOMESTIC DEMAND ECONOMIC THEORY EXCHANGE RATES EXPENDITURE EXPENDITURES EXPORT BASKETS EXPORT PRICE EXPORT PRICES EXPORT PRODUCTS EXPORT SHARES EXPORT SUBSIDIES EXPORTS FINAL GOODS GDP PER CAPITA GROSS OUTPUT IMPERFECT COMPETITION IMPORT DATA IMPORT PRICE IMPORT PRICES IMPORT TARIFFS IMPORTS INDEX NUMBERS INTERMEDIATE INPUTS INTERNATIONAL ECONOMICS INTERNATIONAL PRICES INTERNATIONAL TRADE MARKET SEGMENTATION MARKET SHARES NATIONAL INCOME OIL EXPORTERS OPEN ECONOMIES OPENNESS PRICE LEVEL PRICE LEVELS PRODUCT QUALITY PURCHASING PURCHASING POWER REAL GDP RETAIL SPECIALIZATION STANDARD OF LIVING SUBSTITUTE TARIFF RATES TERMS OF TRADE TERMS OF TRADE IMPROVEMENT TRADE BALANCE TRADE DATA TRADE EFFECT TRADE FLOWS TRADE POLICIES TRADE PRICES TRANSPORT COSTS VALUE OF EXPORTS WAGES WEALTH WORLD TRADE From its inception, the Penn World Tables (PWT), building on the International Comparisons Program (ICP) of the United Nations, has sought to compare the standard of living of individuals in different countries. That is, the term "real GDP per capita" as reported in the PWT is intended to represent the ability to purchase goods and services by a representative agent in the economy. The same is true of benchmark comparisons as published by the United Nations, Eurostat, or OECD. But this expenditure-side interpretation of real GDP is quite different from the uses to which benchmark ICP and PWT data are frequently applied, such as in growth regressions, where "real GDP" is intended to reflect the production side of the economy. In this paper the authors propose a new approach to international comparisons of real GDP measured from the output side. They modify the traditional Gary-Khamis system, which measures real GDP from the expenditure side using real domestic expenditure, to include differences in the terms of trade between countries. The analysis shows that this system has a strictly positive solution under mild assumptions. On the basis of a set of domestic final output, import, and export prices and values for 151 countries in 1996, differences between real GDP measured from the expenditure and output side can be substantial, especially for small open economies. 2012-06-06T15:07:07Z 2012-06-06T15:07:07Z 2007-03 http://documents.worldbank.org/curated/en/2007/03/7451133/estimating-real-production-expenditures-across-nations-proposal-improving-penn-world-tables-estimating-real-production-expenditures-across-nations-proposal-improving-penn-world-tables http://hdl.handle.net/10986/7243 English Policy Research Working Paper; No. 4166 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
BENCHMARK BENCHMARK DATA CONSUMER PRICE CONSUMER PRICE INDEX CONSUMER PRICES CURRENCY DEFLATION DEFLATORS DOMESTIC DEMAND ECONOMIC THEORY EXCHANGE RATES EXPENDITURE EXPENDITURES EXPORT BASKETS EXPORT PRICE EXPORT PRICES EXPORT PRODUCTS EXPORT SHARES EXPORT SUBSIDIES EXPORTS FINAL GOODS GDP PER CAPITA GROSS OUTPUT IMPERFECT COMPETITION IMPORT DATA IMPORT PRICE IMPORT PRICES IMPORT TARIFFS IMPORTS INDEX NUMBERS INTERMEDIATE INPUTS INTERNATIONAL ECONOMICS INTERNATIONAL PRICES INTERNATIONAL TRADE MARKET SEGMENTATION MARKET SHARES NATIONAL INCOME OIL EXPORTERS OPEN ECONOMIES OPENNESS PRICE LEVEL PRICE LEVELS PRODUCT QUALITY PURCHASING PURCHASING POWER REAL GDP RETAIL SPECIALIZATION STANDARD OF LIVING SUBSTITUTE TARIFF RATES TERMS OF TRADE TERMS OF TRADE IMPROVEMENT TRADE BALANCE TRADE DATA TRADE EFFECT TRADE FLOWS TRADE POLICIES TRADE PRICES TRANSPORT COSTS VALUE OF EXPORTS WAGES WEALTH WORLD TRADE |
| spellingShingle |
BENCHMARK BENCHMARK DATA CONSUMER PRICE CONSUMER PRICE INDEX CONSUMER PRICES CURRENCY DEFLATION DEFLATORS DOMESTIC DEMAND ECONOMIC THEORY EXCHANGE RATES EXPENDITURE EXPENDITURES EXPORT BASKETS EXPORT PRICE EXPORT PRICES EXPORT PRODUCTS EXPORT SHARES EXPORT SUBSIDIES EXPORTS FINAL GOODS GDP PER CAPITA GROSS OUTPUT IMPERFECT COMPETITION IMPORT DATA IMPORT PRICE IMPORT PRICES IMPORT TARIFFS IMPORTS INDEX NUMBERS INTERMEDIATE INPUTS INTERNATIONAL ECONOMICS INTERNATIONAL PRICES INTERNATIONAL TRADE MARKET SEGMENTATION MARKET SHARES NATIONAL INCOME OIL EXPORTERS OPEN ECONOMIES OPENNESS PRICE LEVEL PRICE LEVELS PRODUCT QUALITY PURCHASING PURCHASING POWER REAL GDP RETAIL SPECIALIZATION STANDARD OF LIVING SUBSTITUTE TARIFF RATES TERMS OF TRADE TERMS OF TRADE IMPROVEMENT TRADE BALANCE TRADE DATA TRADE EFFECT TRADE FLOWS TRADE POLICIES TRADE PRICES TRANSPORT COSTS VALUE OF EXPORTS WAGES WEALTH WORLD TRADE Feenstra, Robert C. Heston, Alan Timmer, Marcel P. Deng, Haiyan Estimating Real Production and Expenditures across Nations : A Proposal for Improving the Penn World Tables |
| relation |
Policy Research Working Paper; No. 4166 |
| description |
From its inception, the Penn World
Tables (PWT), building on the International Comparisons
Program (ICP) of the United Nations, has sought to compare
the standard of living of individuals in different
countries. That is, the term "real GDP per capita"
as reported in the PWT is intended to represent the ability
to purchase goods and services by a representative agent in
the economy. The same is true of benchmark comparisons as
published by the United Nations, Eurostat, or OECD. But this
expenditure-side interpretation of real GDP is quite
different from the uses to which benchmark ICP and PWT data
are frequently applied, such as in growth regressions, where
"real GDP" is intended to reflect the production
side of the economy. In this paper the authors propose a new
approach to international comparisons of real GDP measured
from the output side. They modify the traditional
Gary-Khamis system, which measures real GDP from the
expenditure side using real domestic expenditure, to include
differences in the terms of trade between countries. The
analysis shows that this system has a strictly positive
solution under mild assumptions. On the basis of a set of
domestic final output, import, and export prices and values
for 151 countries in 1996, differences between real GDP
measured from the expenditure and output side can be
substantial, especially for small open economies. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Feenstra, Robert C. Heston, Alan Timmer, Marcel P. Deng, Haiyan |
| author_facet |
Feenstra, Robert C. Heston, Alan Timmer, Marcel P. Deng, Haiyan |
| author_sort |
Feenstra, Robert C. |
| title |
Estimating Real Production and Expenditures across Nations : A Proposal for Improving the Penn World Tables |
| title_short |
Estimating Real Production and Expenditures across Nations : A Proposal for Improving the Penn World Tables |
| title_full |
Estimating Real Production and Expenditures across Nations : A Proposal for Improving the Penn World Tables |
| title_fullStr |
Estimating Real Production and Expenditures across Nations : A Proposal for Improving the Penn World Tables |
| title_full_unstemmed |
Estimating Real Production and Expenditures across Nations : A Proposal for Improving the Penn World Tables |
| title_sort |
estimating real production and expenditures across nations : a proposal for improving the penn world tables |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2007/03/7451133/estimating-real-production-expenditures-across-nations-proposal-improving-penn-world-tables-estimating-real-production-expenditures-across-nations-proposal-improving-penn-world-tables http://hdl.handle.net/10986/7243 |
| _version_ |
1764401678447017984 |